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Nazarbayev: National Bank and Government must be responsible for growth of economy

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by January 31, 2017 Key Issues

“The key objective here is to restore the incentive role of the monetary policy and the involvement of the private capital in financing of the economy. The National Bank has an important task for the development of the regime of inflation targeting. It is necessary to achieve the phased reduction of inflation to 3-4% in the medium term”, Nursultan Nazarbayev spoke.

According to the President, it’s necessary to “reset” the financial sector.

“It’s necessary to accelerate the work on clearing banks’ balance sheets from the “bad loans” and, if it’s necessary to ensure their capitalization by the shareholders. The National Bank is needed to give more rights to the operational control of the state banks. It must move from a formalized approach to risk-based, to take measures of influence to banks, without waiting for the formal breach on their part”, N. Nazarbayev said.

The President also stressed the need to strengthen the responsibility of audit companies to ensure transparency of shareholders and to improve the corporate governance as a whole.

“All of this should be fixed at the legislative level. The National Bank must be responsible not only for inflation but also together with the Government for the economic growth”, Nursultan Nazarbayev continued.

The Head of State noted that it’s necessary to continue expanding opportunities for people to invest their savings primarily in various types of securities. The President also said that the funds should be reallocated from inefficient programs in the programs, ensuring the realization of the third modernization tasks. In addition, it is necessary to simplify the budgetary procedures for faster and more effective means of bringing to the real economy.

“We need to continue the policy of fiscal decentralization”, the leader of the nation told in the Address.

Source: Kazakhstan 2050

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